More cuts coming, city officials say

SOUTH BEND Â? The city will save money on health care in 2009, although the savings isnÂ?t enough to prevent cuts elsewhere in South BendÂ?s budget.

Money for the cityÂ?s commercial corridors program, along with grants for after-school programs and a contribution to the Youth Service Bureau wonÂ?t happen next year under a proposed budget presented to Common Council members on Monday.

Mayor Stephen Luecke and other city officials point to a revamping of IndianaÂ?s property tax code under the stateÂ?s House Enrolled Act 1001 as the reason for the budget cuts.

The new law caps property taxes for homeowners and businesses and therefore means less revenue for local governments.

The city was spending an annual $1 million to fix up commercial corridors along South Michigan Street, Main Street, Miami Boulevard and Portage Avenue. The money was used for everything from curb reconstruction to curb appeal Â? facade grants businesses could use to fix up the outside of their buildings.

It also was spending $150,000 in grants given to community organizations that ran after-school programs, and $75,000 for the Youth Service Bureau.

Neighborhood plan implementation, valued at $300,000, a work force diversity initiative at $200,000 a year and money to La Casa de Amistad youth center, valued at $40,000, also are gone from the 2009 budget.

Those are all important programs, Luecke said, but other areas of the city budget needed to stay intact.

Â?When you compare that to police and fire and parks and other city services ... those are obviously a higher priority,Â? he said.

But city officials estimate South Bend will save an additional $1.4 million in 2009 thanks to a switch in health insurance companies.

South Bend administers its own health care program to its employees, paid for by premiums, but uses Anthem Blue Cross and Blue Shield to process claims.

Because of the companyÂ?s size, itÂ?s able to get bigger discounts on health services, said Catherine Fanello, South BendÂ?s city controller.

MondayÂ?s budget hearing was the fourth of five such events where city administration officials present budget information to the South Bend Common CouncilÂ?s Personnel and Finance Committee.

The next hearing is at 3:30 p.m. Wednesday on the fourth floor of the County-City Building in downtown South Bend. It will address police, fire, 911 and medical services, as well as police and fire pensions.